After the Constantinople Hardfork ETH Significantly More Volatile Than BTC

All crypto investors have had an Ethereum difficulty in 2018. People were thinking if the Ethereum was dead or alive. But we can say all is gone. The cryptocurrency market is primed for another bull run. While it’s difficult to determine when this bull run will start, there is enough data to suggest that ETH may outperform BTC when the bull run starts. The research, which was released by the Delphi Digital may finally help answer the question; will Ethereum recover?

The most Google search queries for Ethereum were about the falling price ETH. You’d see things like “will Ethereum recover?” Why is Ethereum falling?” When will the price of ETH bounce back?” However, the second largest cryptocurrency per market capitalization started 2019 in green. There has been a lot of positive sentiment surrounding Ethereum for the last few months. The long-awaited Constantinople hardfork finally took place and for the first time in a long time, ETH investors had hope again.

Delphi Digital, a New York-based analytics firm, conducted extensive research on the current state of the industry. Typically, Bitcoin fuels the bull runs and outperforms Ethereum and many other altcoins. However, this isn’t a rule. There have been cases were altcoins fueled and outperformed bull runs in place of Bitcoin. The report suggested that ETH and other altcoins have higher volatility than BTC. This is why you can see situations were Bitcoin will rise by 3% and an altcoin like BNB will rise by up to 20%.

The research pointed out that Ethereum’s beta, a technical measurement of the price volatility of ETH relative to BTC, has been on a steady rise for the past six months. This means that ETH has been more volatile than BTC within the said period. Part of the report was as follows:

“ETH has also been significantly more volatile than BTC over the last six months. Its 90-day beta relative to BTC is currently 1.5, substantially higher than its historical average (though price history is limited),”

The report noted that while ETH and other altcoins fall faster than BTC during a bear market, they rise faster when the bulls take control. So, when another cryptocurrency rally starts, there is a high chance that the price action of ETH will outperform BTC short-term.

Delphi Digital noted that against BTC, ETH has been experiencing more of a downside price volatility over the last eighteen months. However, this may change thanks to all the positive sentiment surrounding the coin. It continues:

“We are, however, beginning to see upside volatility pick up for ETH. Given the extremely high intra-market correlations we previously discussed, this is a trend we are monitoring closely as ETH may be poised to outperform if BTC rallies,”

This is the best time to buy and accumulate cryptocurrencies. Many experts have anticipated a bull run short-term, if you buy now when the prices are affordable, you can sell later when the prices surge.